MONEY DIARIES| FUNDRISE

I’ve been wanting to invest for quite some time now. But it has been pretty intimidating, especially considering the fact that the first time I tried to invest in the stock market through the round-up to the nearest dollar app; I lost $17 in about three days. Might not seem like a lot, but literally every time I looked at my phone I had lost a dollar and I was not here for it to say the least.

There are so many options nowadays, but I wanted something more… legit? if that’s even the right word to use. I have done some research and the option I decided to go with for now is crowd funded Real Estate; Fundrise to be exact. The main reason I went with them is because you only need $500 to start an account (most other crowdfunded platforms require about $10,000 to start an account)

So I invested $500 in Fundrise and this is how the process went.


QUICK NOTES ON FUNDRISE (FOUND ON THEIR WEBSITE)

  • They invest in private Real Estate

  • If at any time during your first 90 days you’re not satisfied, we will buy your investment back at the original investment amount.

  • You earn returns primarily in two ways: (A) via quarterly dividends and (B) via appreciation in the value of the shares of your investment. 

  • Dividends are typically distributed in the middle of the month following the end of each quarter, e.g. mid-April for dividends earned during the first quarter.

  • Fundrise is intended for investors who have a minimum time horizon of approximately five years. However, we have adopted a redemption plan whereby an investor may obtain liquidity monthly.

  • [The fees] The offerings in this plan pay a 0.85% annual asset management fee. In addition, investors pay a 0.15% annual investment advisory fee, which may be waived under certain circumstances. 


BASE ON MY RESEARCH HERE ARE SOME OF THE PROS AND CONS:

CONS

  • You’re money is tied into this for long period of times (That could be on the negative side for you since getting access to your money quickly is not guaranteed)

PROS

  • If you want to be a long term investor but don’t really want to invest directly in the stock market Fundrise might be a good option for you

  • Your money is not invested in one property but multiple ones

  • It’s low maintenance

I WANTED TO SHARE THIS LITTLE EXPERIMENT. SO YOU GUYS CAN FIGURE OUT IF THIS IS SOMETHING YOU WOULD BE INTERESTED IN AND IF I LOSE MY MONEY AT LEAST WE DON’T ALL HAVE TO TAKE THE “L”, I’LL TAKE THIS ONE FOR THE TEAM.


STEP 1| SETING UP THE ACCOUNT

When you go onto the website they’ll ask you some basic question like your email and such.

STEP 2|CHOOSING YOUR PORTFOLIO

You get to choose between three different types of accounts . I went with the starter account level that allowed me to invest the minimum $500.

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STEP 3|INTERFACE

This is how the website looks on the user side it is pretty easy to navigate, which I really appreciate.

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Step 4| We wait

I’ll share an update blog post on this next month to see how the account changed and from there I’ll share a post during the quarterly dividends shares.

I am so excited for this! I hope this will help you decide if Fundrise is something for you. I know I was scared to invest but a universal tip I always hear is the sooner the better. But I still want to be smart with my money!

Let’s do this.

*This is a note to make it clear that I am NOT a financial advisor. The purpose of these post is to solely share my experience.

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My experience with Fundrise, money management, investing, college, beginner investment, college investing,